Electronics For Imaging, Inc. (NASDAQ: EFII) is having an incredibly strong start to the trading session this morning after announcing that it has entered into a definitive agreement to be acquired. Of course, the news excited investors who are pushing the stock for the top. Today, we’ll talk about:
- The acquisition news;
- what we’re seeing from EFII stock as a result; and
- what we’ll be watching for ahead.
EFII Announces Acquisition News
As mentioned above, Electronics For Imaging is having a great day in the market today after announcing acquisition news. The news came by way of press release early this morning.
In the release, EFII said that it has entered into a definitive agreement to be acquired by an affiliate of Siris Capital Group. The transaction will be an all-cash one with a total value of about $1.7 billion.
According to the terms of the agreement, an affiliate of Siris will acquire all outstanding EFII common stock at a price of $37.00 per share. This price represents a strong, 45% premium to the stock’s 90-day volume-weighted average price ending on April 12, 2019.
In a statement, Bill Muir, CEO at EFII, had the following to offer:
We believe this transaction delivers superior and immediate value to our shareholders while providing us with a partner that can add strategic and operational expertise to our business. We are excited to partner with Siris’ highly experienced team on this next phase of growth for EFI.
The above statement was followed up by Frank Baker, Co-Founder and Managing Partner at Siris. Here’s what he had to offer:
EFI is at the forefront of the digital transition in the imaging and print industry, underpinned by a strong software heritage and culture of innovation. We believe that, by partnering with Siris, EFI will be well positioned to capture this transformational opportunity associated with increased digital inkjet penetration, industrial automation and software enablement. We are eager to partner with management to help the Company achieve its strategic objectives.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Electronics For Imaging, the news proved to be overwhelmingly positive.
After all, not only will the company be acquired, the acquisition is happening at a strong premium. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:51), EFII is trading at $37.28 per share after a gain of $7.88 per share or 26.79% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on EFII. In particular, we’re interested in following the story surrounding the acquisition news. While the agreement is a definitive one, the transaction is still subject to customary closing conditions. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
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